Things to look out for when investing in dividend-paying stocks

[Johnson2468]

Dividend yield, which is the annual dividend payment divided by the stock price.
Investors should look at a company's dividend payout ratio, which is the percentage of earnings that are paid out as dividends.
It's important to consider a company's financial stability and future growth prospects
Investors should also be aware that dividends are not guaranteed and can be reduced or eliminated at the discretion of the company's board of directors.

 

[Magnus2022]

Investment is risk and it will always be. Though checking the past records and the financial capabilities of the company will help but still is not 100% guaranteed to give reliable forecast. An investor will always bear in mind that investment can crumble.

 

[uptrendfinancialsignal]

You must ensure the credibility of the company you are buying their stock and you must ensure that they have a very good financial stability.

 

[nomad]

When you are investing, instead of looking at the price of the stocks and the return it is giving, look into the business and try to find out whether it is a sustainable business model or not

 

[Rubz]

When investing in dividend paying stocks, one should look out for;
- the dividends yield
- pay out ratio
- earnings growth
- cash flow
- industry trends and market trends - dividend history
- growth prospects
- economic condition